In the Milwaukee, WI market in May, closings of new homes declined year-over-year, sliding down after a surge in April 2016. There was a 11.6% drop in new home closings from a year earlier. This was after the housing market saw a 15.4% rise year-over-year in April.
A total of 466 new homes were sold during the 12 months that ended in May, down from 471 for the year that ended in April.
As a percentage of overall housing closings, new home closings made up 1.5% of overall housing closings. A year ago, 1.8% of total closings were new home closings. Following a year-over-year increase in April, closings of new and existing homes also climbed year-over-year in May.
Pricing and Mortgage Trends
The average price of new homes fell 4.0% year-over-year in May to $329,253 per unit. This drop is a drop off from the 15.6% fall in April from a year earlier.
The average mortgage size on newly sold homes saw a decline year-over-year in contrast to new home prices. It dropped 15.9% in May from a year earlier to $290,257. Average mortgage size fell 8.7% in April 2016 from a year earlier.
Other Market Trends
The share of new home closings made up by attached units has risen while the share belonging to single-family homes has fallen. Attached unit closings rose from 30.2% of all closings in May 2015 to 36.8% of closings in May 2016. Meanwhile, single-family home closings as a percentage of all new home closings dropped to 63.2% of closings from 69.8% of closings.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in May, but did not look to be a burden on the market. Foreclosures and REO closings, taken together, accounted for 17.3% of existing closings, lower than 18.5% a year earlier. The percentage of existing home closings involving foreclosures dropped to 6.7% in May from 7.7% a year earlier and REO closings moved from 10.7% of existing home closings in May 2015 to 10.6% in May 2016.